The Securities and Exchange Commission (SEC) has announced its support for the Nigeria Exchange Group (NGX) in its endeavor to launch a new digital platform aimed at modernizing the process of rights issues and public offerings in the Nigerian capital market. The platform seeks to streamline operations, enhance efficiency, and make the market more accessible, particularly to younger investors.
During a stakeholders engagement in Lagos, SEC’s Director General, Emomotimi Agama, emphasized the importance of modernization in achieving a world-class market. He highlighted challenges such as paper-based processes and unclaimed dividends, stressing that these issues need to be addressed to attract a youthful demographic in Nigeria, where 74% of the population is below 24 years old.
Agama expressed optimism about the platform’s potential to onboard more investors and contribute to Nigeria’s economic goals, including President Bola Tinubu’s vision of achieving a $1 trillion economy. While the platform awaits SEC approval, Agama assured stakeholders of the Commission’s commitment to supporting initiatives that enhance market growth and investor protection.
Temi Popoola, CEO of NGX Group, echoed these sentiments, emphasizing the platform’s role in enhancing convenience, efficiency, and inclusion in the capital market. He noted the platform’s readiness pending SEC approval and highlighted its potential to digitize offerings fully, removing paper processes and aligning with modern technological standards embraced by Nigerian banks.
The launch date for the digital platform will be announced once SEC approval is secured.
Source: Vanguard